Why e Check ?

e Check is an e-payment solution that replaces the credit card, and is tailored to US merchants and consumers. E-check option allows your customers to purchase your products or services and make payments directly from their bank accounts. When your customers pay you with an e-check, the money is not debited from their credit card; it comes from a bank account of their choosing. Like a normal check, it takes up to five business days to clear. An e-check can be cancelled any time before the money appears in your account, giving buyers a window of up to five working days to stop their payment to you.

Website sellers can defer the transfer of their products or services to the buyer until the money has arrived in the clearing house. This prevents buyers from canceling their e-check once they have control of the merchandize, thus leaving the seller without payment for it. We suggest you make it very clear to your customers that you will not transfer any products to the buyer until their payment has cleared.

The Check 21 Act is a US federal law that is designed to enable banks to handle more checks electronically. Instead of physically moving paper checks from one bank to another, Check 21 allows banks to process more checks electronically.

Banks can take front and rear images of checks along with their respective payment data and transmit them electronically. Merchants may use a check as a source of information to create an electronic fund transfer. Check owners must receive notice that the check may be processed this way. If a receiving bank or its customer requires a paper check, the bank can use the electronic image and payment data to create a paper “substitute check”.

A consumer deposits money in his/her bank account, writes a check and hands it to a merchant. The merchant’s bank digitizes the check and claims it from the consumer’s bank. (The consumer must approve this transaction method). This way, the transaction is made.